Asymmetric price transmission in the Spanish lamb sector

By M. Ben-Kaabia, J. Gil. 2007

126 citations recorded by the source corpus.

This article investigates the non-linear adjustment between farm and retail prices in the lamb sector in Spain, using a three-regime Threshold Autoregressive Model. The results indicate that, in the long run, price transmission is perfect and any supply or demand shocks are fully transmitted along the marketing chain. In the short run, price adjustments between the farm and the retail levels are asymmetric and reveal a demand-pull transmission mechanism. On the other hand, retailers benefit from any shock, whether positive or negative, that affects supply or demand conditions. Copyright 2007, Oxford University Press.

Subfields: Economics and Econometrics, General Agricultural and Biological Sciences, Marketing

View Paper: https://www.semanticscholar.org/paper/ad2bd68f8829083a38e95a791c517c0c4976da31

How researchers see this paper

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In Economics and Econometrics

1. P. Fousekis
2. Emmanouil Trachanas
3. C. Katrakilidis

In General Agricultural and Biological Sciences

1. Emmanouil Trachanas
2. P. Fousekis
3. C. Katrakilidis

In Marketing

1. Emmanouil Trachanas
2. P. Fousekis
3. C. Katrakilidis

Citations in the corpus

• Vertical price transmission in the US beef sector: Evidence from the nonlinear ARDL model (2016, methodology): “…the asymmetric ECM model have been employed in empirical studies including the Threshold Vector Error Correction Model (TVECM) which allows not only the sign but also the magnitude of the error correction terms to impact on price transmission (e.g. Goodwin and Holt, 1999; Ben-Kaabia and Gil, 2007).”